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THOUGHT FOR TODAY Old timers burned the midnight oil in lamps; junior burns it in the cylinders. Oshawa Time WEATHER REPORT Partly cloudy very cool today Winds decreasin: and continuing and Wednesday. g Wednesday. _ Ohe VOL. 92--NO, 160° OSHAWA, ONTARIO, TUESDAY, JULY 9, 1963 Authorized os Second Closs Mall Post Office Department, Ottawa and for payment of Postage in Cash. EIGHTEEN PAGES Reaction In Contrast To lst Budget Storm By THE CANADIAN PRESS; The changes were helpful,as we were when Mr, Gordon Taking the view that half aj"but all in all, we still think)/brought down his budget June loaf is better than none, spokes-|that imposition of these taxes|13, His decision to retain the men for business and industry not in keeping with incentive|sales tax on production machin- reacted with some mild appro-|to the economy or improvementiery will add upwards of $100,- val Monday night to Finance/to the employment picture," he/000,000 annually to the cost of Minister Gordon's modification! said {manufacturing in Canada--and of the new budget's 1l-per-cent) H, Roy Crabtree of Montreal, at this very time when our sales tax on building materials/president of the Canadian Man-|P!ants must remain competitive and production machinery. ufacturers association, wel-|if we are to lick the bugbear of {| Typical was this comment|comed elimination of the tax on|¥2employment . = \from C, J, McConnell of Ed-'materials consumed in the man-| George Mooney of Montreal, threatened by Communists, |monton, president of the Na-jufacturing process, "which/executive director of the Cana- anarchists, pacifists and other |tional House Builders Associa-/would have been an unduly|dian Federation of Mayors and agitators tion heavy burden 24 Municipalities, said municipal "We are gratified that Mr. Applying the tax to produc.|S0vermments will have mixed |Gordon has seen fit to comply)iion machinery in:stages would|{eelings about the modified tax with this request so the indUs-inein manufacturers adjust to/P!an. try can become acclimatized to the situation "They will j {the higher costs, : " know that the immediate } He referred to the decision to WILL STILL, HURT dence of the tax is to be re-| -- the tax in stages--four 'But at the end of 18 months/duced to four per cent, but: they jper cent now, another four per)we will be almost as badly off/will be comcerned, if not jcent next April 1 and a final)-- -- alarmed, to anticipate that it hree per cent at Jan. .1, 1965 jwill be doubled by April of next} Poli Youths Clas Olice, YOuTNS h e e e Durin Ro V alty Visit | | jAssociation officials had visited) jyear and that nine months later Ottawa recently to ask that the |the full tax will be imposed. LONDON (AP)--Police today Said Jay Nightingale, 23, one; Police kept demonstrators | tax either be Se "Even a four-per-cent in beat back youthful demonstrat-!of the would-be demonstrators:|nearly half a mile from the or applied in gradual steps For Ca nters crease in building material cost ors who tried to picket King) "A policeman grabbed my/jroyal plane. ), PUBLISHERS HAPPY is bound to have adverse ef-|Chinese negotiators failed to Paul and Queen Frederika of/banner and we were pushed) Prince Philip headed the wel- Spokesmen for the exporting) TORONTO (CP)--The Unite fects on the volume of munici-ishow up at the Moscow-Peking Greece as they entered Buc along the sidewalk, Some of our|coming party for the royal visit- a sulin indatries were Alamaihond ( See he /nited pal construction that can be reconciliation talks today after ham Palace to begin a four-day/banners were shattered." ors and G k Premier Panayo- be Pcwerg with Mr "Ganten's rot ner hood of Carpenters and carried out. The effect will be|the Soviet Union fired state visit Admitting the police had foiled|tis Pipinelis, They boarded in) bart - Piro? cis the tae ie ea gf 08 that some projects. will be de-|charges at Red China and "We aren't provoking Vi0-/efforts to demonstrate outside Special train for the 25-mile: trip materisls. CONE UM 64 OF 6 sl ---- ' vg een ferred and other projects will|warned of "dangerous conse- sonal Seedy eth) the palace while the Greek king|'0 geno ch hip veer sa pended in a manufacturing pro-| stra "t tenis orgy k re be cut back and conceivably; quences." Brown, an 18-year-old nt./and queen were lunching with To prevent any gruaredacaaine | Mint i pe ion irms as a stri b DY ae may be canceled * Western correspondents path: "We just want to k he! Philip. Chandler said police put guards on the 19/CeSS. -- . ne 4,206 carpenters against the Tor-| eke Guisida (ha semicon in ae lace." , : bridges over which the train) David MacLellan, genera: onto Construction Association WANTS ALL REMOVED swank Lenin Hills sections of pence, - . pinning our hopes On! passed manager of the Graphic Arts In:|entered its second day ' i S sect 0 Sheltered by one of the We hope to march on/P"ON iu. eth waited el ccc tees Adsation ahid Gils 7 pide Arthur May of Ottawa, man-|Moscow where the talks have gest security guards ever palace from Tragalgar anton eo cae yrs end ont volo a gape "printers, The'union said the firms have aging director of the Canadian|been held were told by a police- mbied for a royal visit, 'h cia |pla ictoria § » ac-/has y i ' Greek royal family had a cheer sa jcompanied by Princess Marga-|publishers and suppliers from ful and happy reception The welcome at Victoria Sta- tion was gay, There was not the port today, Elaborate protec- tive measures were taken as the royal couple arrived for a four-day state visit which ts KING PAUL AND. Queen Frederika of Greece smile at greeters as they leave their plane at London's Gatwick air- WALTER GORDON Red Chinose Don't Attend Negotiations MOSCOW (AP) -- Communist RS. --(AP Wirephoto) be relieved to inci- Interim Deals V Pp Sq As the royal party lunched all/ ret and her husband, Lord Snow-|the prospect of bankruptcy." was quiet outside, With such aiqon: Greek-born Princess Ma:-| nue . , # eould - o huge, ig gin spy it could ring and her daughter, Princess lishing and allied industries) gain through the association slightest hint of tension as King AaN 'y e oth ev jAlexandra; the latter's husband, would have been placed at an Paul smiled about him and) "We aim to follow the kingjAngus Ogilvy, the Duchess vf almost total disadvantage com-| kissed Queen Elizabeth and alljand queen everywhere they go/ Gloucester, Prime Minister Mac-| jotitively with respect to the! the British royal princesses in Ev time they appear in} millan and members of his gov- United States and other coun- greeting. ; public, we'll be there," said a/ernment tries." é They saw none of the mildjspokesman for Britain's Mili There was a general exchange ~~ iwee 7 rators tant Committe f 100 nh) Of smiles and kisses between the 3 > clashes be en de strato ant { bmmittee of 100. which |¢ 8 niles | nd ki aunts ok the Gueatiak ee and the police harges Greece is holding 960 two royal families i! r ceamant i are The most determined effort-to political prisoners and demands A 4l-gun salute sounded from/porters' Association, toni 3 ; 'twos " ee Hyde Park tw il vay.|porting firms will be '"'greatly mar the royal arrival was be-/their release yde Park two miles away,|porting fi side the palace traters .|Cheers filled the streets as the/relieved 'about 50 of cashes Gna procession got under way "Many exporting companies-- . t a ce More than 6,000 uniformed po-inotably in metals, chemicals wanted to stage a and as the rova : " ! tion outside the palace shartered jet. icemen, 1,500 detectives and 150/and papers--would have had to aT >» Chand ne ier ews oO It special branch officers were On|increase the price of their end ta ete page anied at ea sitpors sou juty among the crowds. An product by as much as two to} a save-Greece-now committ vented. then gutting ter 1,500 soldiers, sailors, ma-/three 'per cent if the sales tax ' yf A i and airmen were stat . li heir expe . G king and queen Kei iak : aboned were applied to their expe nd CLAIM ROUGHIN ug the route of the proces-jable materials "But the police Yard fF hrough the heart of Lon- up and wouldn't down the fla draped added to Buckingham Palace eons' Malaysian Group Agreement Signed couple and demo in a side street LONDON (AP)--The way is r for of the Fed to premium pay and to any set-|said the entire tax should have|be coming. * nee jtlement reached with the TCA,/been removed. "But some relief "The Canadian printing, pub-jalthough the firms do not bar-jis better than none at all." The agreement will enable the treasurer of the Canadian Labor/ence site early in the morning. to resume work, the union said. supply only temporary relief./HOur after the talks usually be- ased unemployment and re-|the Chinese. Soviet officials be- tion of job opportunities gan leaving the estate. pincer : The Chinese absence aroused #nt contractors are seeking sim. c J. M, McAvity of Montreal, jiar agreements. stric the new Soviet attack. Some Convicted Fraud [tr sch ass fone emons in our peopl demonst said ho sashes one of n the coun ess jmight call an end to the ses- sions in retaliation Strangled Shot | The Soviet Communist party ' organ Pravda today shattered the silence surrounding the CLEVELAND (AP) -- Police;gasoline when he left to visititalks with a harshly - worded set out today to find the slayer|Birns Kremlin statement accusing the Such comments were in sharp)of Mervin L. Gold, twice-con She said she had given to the/Chinese of stirring up further contrast to the general stormivicted financial manipu-|FBI sealed envelopes as her/hostility towards the Russians the busin lator whose body was found/husband had instructed her if) sae ped in a blood-spotted pink he did not. return, Federal/K SNUBS MEETING blanket in the trunk of a car.jagents said the envelopes were One of his convictions was for/opened but declined to disclose af using Canadian bonds as collat-/their conte chev snubbed the Moscow meet- Station ' ral Police C Johh Vondracekjing with the Chinese and con- Screaming "'Re! y the Ambatielos, i of an imprisoned G jon official was by the police Mrs, Ambatic serving a life sen on charges of t a revolution aga government Mrs. Ambatielos leased after the dragged away had . wra today signed a nec made pacts that commit them/Builders Supply Association,|man that the Chinese would not The correspondents noted the usual signs of preparatory ac- Donald MacDonald, secretary-|tivity at the fenced-in confer- firms, which employ 400 men,|Congress, said the changes will| But at 11 a.m.--more than an It said many other independ./The eventual result must be. in. gin--there was still no sign of MILD APPROVAL GIVEN CHANGE IN SALES TAX Gordon Reveals Major Retreat By ALAN DONNELLY | OTTAWA (CP) Finance} Minister Gordon has knocked a $115,000,000 hole in his June 13 budget with a major retreat from its controversial sales tax on building materials and pro- duction machinery. In a Commons statement) Monday night that brought op-| position jeers, he watered down) the 1l-per-cent tax to an imme- diate impact of four per cent and said the full rate won't be} applied until Jan, 1, 1965. He also exempted schools and universities completely from the tax on building materials, and opened a big loophole in his original plan to push foreign- |controlled companies into sell- jing a minimum 25-per-cent own- jership to Canadians. | It was the second major sur- gery performed by the fresh- man finance minister on his jfirst budget speech. On June 19 jhe had lopped off the budget's jbold new plan for a 30-per-cent jtax aimed at halting foreign takeovers of Canadian firms. Mr. Gordon made both alter- ations amid heavy pressure and a deluge of complaints from | neW/MPs and the business commu-} nity. Observers could recall no |previous federal budget being so widely changed by the gov- ernment, 'IS IT FINAL?' "Is this the final } version?" Opposition Leader Diefenbaker called out at one point during the package we have decided to stand on." Mr. Gordon, in his Cothmons statement, said the government "cannot accept" pleas to wipe out completely the 1l-per-cent tax on building materials and jproduction machinery. But--amid opposition cries of "chicken""--he set out the legis- lative plan for a delayed-action tax' bite, RISES NEXT YEAR The new tax, effective June 14, would be four per cent. It will rise to eight per cent on April 1, 1964, and to the full ll- , per-cent rate after the end of 1964, Manufacturers who had al- ready paid the full rate since the budget would receive re- funds. Mr. Gordon described the tax stretch-out and the exemption for schools and universities as "changes of substance." But he also announced a se- ries of other amendments to ease the impact of budget mea- sures, describing them as '"'clar- ifications'. -- a term which brought boots of opposition laughter. He estimated, with "regret," that the changes will cost the treasury $115,000,000 of the $155,000,000 in tax increases im- posed by his budget for the cur- rent 1963-64 fiscal year. They also would mean the loss of an estimated $125,000,000 of the $455,000,000 in tax increases provided by the budget for the the minister's statement. tion parties, not go so far or so fast."" But Mr. Gordon said the jchanges don't alter the objec- tives of his original budget, and he told reporters afterwards: Power To Goldberg In Railroad Rift WASHINGTON (AP) -- Presi- dent Kennedy proposed today {that U.S. Supreme Court Jus- jtice Arthur J. Goldberg be em- powered to decide all issues in the strike . threatening dispute |work rules. J. E, Wolfe, chief negotiator }parley of both sides in the dis- | pute. He said that if both sides ac- cept, the work rules will not be The new Soviet party state-|put inte effect until Goldberg, | 'former labor secretary, has made his binding report. Wolfe said he thinks this would be prior to Sept. 30. sion passed Ce Mrs, Ambate scrape with t outside the Queen's Lo tel last April. The @ she grabbed her by t ers PICKETING FAILS The threat the palace ne orm ndependent Ma- coverning island fee st AUDITORIUM PROGRESS persons and rubber e boas's one of the bus st ports in Asia and is the site f a huge British military com ex tn t $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $50,000 ce appeared from his pluza $70,000 suburban home Friday night. NAME RACKETEER Dr. Gerber said the smalls amount of blood indicated Gold illed elsewhere, then ced in the car trunk was ordered to de- ne Cause Of death riff James McGettrick said a@.the arrest of Alex - time Cleveland announce ment of the sales tax plan Other spokesmen Monday night maintained tical Thomas A. Somerville, presi-| wore $200 suits, was discoverpd/night. Investigation showed it/Chinese militantly oppose dent of the Canadian Construc-)\tonday night, It was crammed|was listed to Gold's wife, Von-/Khrushchev's peaceful coexis- ig his group stil rds the [aX/in 9 desolate area in suburban/found the body around 8 p.m.)/meeting with Spaak. Commo thSecretary as a "dis-ince to IMPrOVe-' Solon. There were two bullet) Mrs. Gold told authorities the t Duncan neck a green plastic cord)wrapped and the one on which rally in Peking Sunday in sup- Prime Minister Macmillan : ee. s »ped tightly around his'he was lying did not belong to port of five Chinese expelled Chief Minister Detectives have provided the success story Gold, who climbed up the lad-'Provide 00d clues, -- wf free Asia, We hope this story} Named For Aden der in a @-year period, at- The on's capital will) ADEN (Reuters)--Zain Abdo August, 1961, when he fled from be at Kuala Lumpur in Malaya Baharoon became Aden's chief his home and went. to Israel. pee ge "ney. Were announced for the British lived abroad more than a year Rahman, a strong anti-Com- votectorate's second nationallbefore returning to Cleveland munist, d ibed the agreement! " ' recent histor yof Southeast Asia. Baharoon, 32, was 'finance, He was convicted and sen- aped federation of " minister in the last government. /tenced in March of this year of r ration of ception of a federation thatiter since April, when the late|bonds as collateral for loans would bring in the Borneo ter./chief minister Hassan Ali Bay-'from Cleveland banks. He had »verwhelmingly Chinese popula. died last month in a London hos- sentence and $20,000 fine. Las on. some of it Communist rital month he was convicted again jing $42,000 through manipulation jof assets of the Cosmopolitan In the Russian view, given to pany Incorporated : aa ace : Coroner Samuel R. Gerber apes to use new . * . preserve the postions, Police Seek Missing Metro Boy could have killed ths TORONTO (CP) -- Metropolitan Toronto po are ; i Monday for a dentist appointment and has not been seen since NAIROBI (Reuters) -- Twenty-three Negro men, women and children were murdered in a tribal raid on Kenya's A large party of Sudanese Tipoth tribesmen, armed with rifles, crossed the boarder and attacked a Turkana tribal SOME STILL CRITICAL crihca view, however status of a businessman whojwhich was » paid into the Malay. tion Association, said in Toronto|into the trunk of the car parked/dracek pried open the trunk and/tence policy, underlined by his ys signed the treat/ment in the economy wounds in the right side of his)/blanket in which Gold was|ment denounced speeches at a for Britain said: 'Malaya and S re k her. Detectives said they May from the Soviet Union rill conti ma langer scale tracted international attention in prime m minister today when members with his wife and children. He ~ est venture in. the goverament last October ; ono Britain backed Rahman's con-/ ne has been acting chief minis-/using $55,000 in stolen Canadian miles extends ritories to of fs et Singapore's! oomj first became ill, Bayoomilappealed the eight-year prison this time on charges of obtain-& LA T E NEWS FLASHES Small Business Investment Com- y Tass news agency, Brit- : said either the bullets or stran- imperialism and cor ail searching for Jimmy Moriarty, 10, Toronte, who left home ° id 23 Murdered In Tribal Rai northwest border with Sudan, police reported here today encampment ce said Fire Claims Second Victim ORILLIA (CP) -- A Bass Lake te ed its second victim when Mrs. Lillian Shirley Forest Hill died in the Toronto General Hospital Mrs. Fagan and her two sons, Harvey, 10, who died on 18, d Leonard, 11, who is stil in suifered s when the tent they were sleeping in at i provincial park burst into Hames in the dead of night was found in an isolated sec- tion of suburban Solon Monday night. Gold; convicted of fraud in his dealings, had been miss- THE TRUSSED-UP body of - : Mervin Gold, 32-year-rid in- early Saturday She vestment manipulator, jies in 'said Gold had only $2 and litile the trunk of his car, which Gold, who identified her 4 f x Conservative financial critic) 4 3 \George Nowlan, leading off a/this will boost the budgetary round of comment from opposi-/@efici to $655,000,000 for the said Napoleon's/Current year from his June 13 1812 retreat from Moscow "'did 1963-64 fiscal year. Mr. Gordon later indicated ga of $585,000,000 in red ink. | It would also produce a $25,- j000,000 deficit instead of the ex- jpected $20,000,000 surplus in the non-budgetary old age security speculation that they were| "As far as the government is/{nd which finances the univer- awaiting Peking's reaction tojconcerned, this is it... this js/Sal $65 old age pensions. | Last year the budgetary defi- jcit was $709,000,000 and the old age security fund deficit was $43,000,000. CRITICIZE RETENTION | Social Credit financial critie {Gilles Gregoire and New Demo- cratic critic Colin Cameron. both. leriticized retention of the tax on |building materials and produc- jtion machinery. | Mr. Gregoire said the stage- The Soviet blast came shortly) between the American railroads|by-stage rise in the tax would r Soviet Premier Khrush-| and the operating unions overjresult in hoarding of building materials by big construction jfirms. Mr. Gordon told report- p The body of Gold, who rose|said there were no marks of/ferred in Kiev. with Belgian For-|for the railroads, told reportersjers that the cost of stockpiling quickly from cab driver to the/disturbance around the car,jeign Minister Paul-Henri Spaakjof Kennedy's proposal at the}would rule out any great : spotted Saturday)on easing cold war tensions, The/conclusion of a White Housej)amount of advance purchasing. The series of budget "'ciarifi- cations" announced by the min- ister included some sizable ben- efits, He lifted the sales tax from materials consumed or ex- jpended in manufacturing pro- jcesses--a step that will benefit jthe printing and graphic arts in- |dustries and many manufactur- jing enterprises. | The sales tax on building ma- jterials and production machin- jery sold under fixed-price con- \tracts signed before June 14 will ibe exempt on deliveries up to |Dec, 31, 1964, deadline that wts announced by Revenue Minister Garland in an earlier "'clarifi- jcation" of the budget. Also, binding pre-budget ten- ders submitted by suppliers and contractors will, if accepted, re- ceive the same treatment as fixed-price contracts. A further change means the Sales tax will apply only on ma- iterials going into pre-fabricated jbuildings and building compo- nents, and will not be levied as well on the pre-fabricated prod- uct. TELLS OF ALTERATION -Mr. Gordon outlined an im- |portant alteration in his origi- jnal budget scheme of tax in- centives and penalties aimed at 'encouraging a minimum 25-per- "jcent minority Canadian owner- ing .since last Friday night and was on $100,000 bond. The | boily was found with a blanket over the top half of it. jhe jwould be determined by ship in foreign-controlied cor- porations. ; "To -give greater stability," said, a company's status the ownership of its shares during the 60 days preceding the com- pany's tax year. Moreover, a company could meet the minimum 25-per-cent Canadian standard if its shares are listed ona Canadian stock exchange and not more than 75 per cent of its voting stock is jowned by a foreign shareholder jand others associated with him.